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Areas Operation Overview

Global Insurance Company which was established in 1997 is engaged in non-life insurance business. Its annual gross premium from the same business is steadily increasing. Despite small market share, the profit of the company is growing and the company is in the right track regarding risk selection exemplified by the overall loss ratio of the company which remains under 40%.
The company had only six braches until recently. It opened four full fledged braches in the last four years. One more branch is under process and expected to be functional very soon. Now, the company has ten fully fledged branches and one contact office among which six branches are in Addis Ababa. The expansion program of the company is not limited to branches only. It also commenced providing Emergency Travel-Health insurance cover for travelers.
The share of each class business of the company is healthy and that of the motor portfolio also remain to be less than 50% of the total premium. Marin covers 32% of the total premium while the remaining is distributed among other classes of business.
The company constructed an eight floor building from its own fund for a cost of Birr 20,000,000. The building is hosting the Head Office and the Main Branch of the company. It will also contribute significantly to the revenue of the company by generating income from rent.
In addition to the insurance business, the company is given license from the Federal, Addis Ababa, and Oromia Transport Authorities to perform annual road Worthiness inspection service to vehicles. The company is generating significant income by giving the service at its Head Office Compound and in collaboration with Garad PLC at kaliti site.



  1. Non-Life Insurance


  1. Property Insurance


  1. Motor insurance
  • Private and commercial vehicles
  • Special vehicles


    1. Motor Comprehensive 

Insurance policy covers:

  1. Accidental collision or overturning upon mechanical breakdown or wear and tear but excluding damage to tires unless such insured motor vehicle is damaged at the same time
  2. Fire, external explosion, self-ignition, lightening, theft
  3. Malicious act
  4. Transit risk
  5. Impact damage caused by failing objects
  6. Legal liability to third parties for bodily injury or death and damage to property up to specified limit
    1.  Third Party only policy Covers
  • Legal Liability to third parties for bodily injury or death and damage to properties.
  • Damage to own motor vehicles directly caused by fire, self-ignition, lightening, explosion, theft or attempted theft
    1.  Third Party only Policy Covers
  • Legal liability to comply with proclamation No. 559/2008 for vehicles insurance against Third Party risk) of the insured to third parties for bodily injury or death and damage to properties up to specified limit
    1. Motor B.S.G

This cover is extended under motor comprehensive insurance policy on payment of additional premium. Covers: Fire, explosion, riots, strikes, civil commotions all arising out of the actions of bandits and Guerillas

    1. Yellow Card Cover 

Provides minimum Third party Cover to comply with the law of the country visited by the insured vehicle in COMESA member countries like Djibouti and Sudan for bodily injury or death or damage to property caused by the insured vehicle.


  1. Fire Insurance Policy Covers

Loss or damage to the insured property by fire, lightning and explosion of boiler/gas used for domestic purpose.

 On payment of additional premium the policy can be extended to include the following.

Earthquake, storm, tempest flood, aircraft damage, impact damage, spontaneous combustion, bursting or overflowing of water apparatus, bush fire, subsides and/or collapse, strike, riot, malicious damage and explosion.

  1. Burglary and house Breaking Insurance Policy

Loss by theft following upon actual forcible and violent breaking into or out of a building, or consequent upon any attempt threat or if there shall arise any damage to the property insured.

  1. Plate Glass Insurance

It covers “glass” in the insured premises shall be destroyed or broken by any accident or misfortune of a fortuitous character except:

  • Any breakage of horizontal, amamental, silvered and bent glass
  • Breakage or demand arising out of or in connection with the fire explosion earthquake and civil war
  • Creaked or imperfect glass
  • Breakage caused through fire or gas heat or by willful act
  • Consequential loss
  1. Marine Cargo

Marine Cargo Insurance covers loss and damage to the subject matter insured on “all risk” basis from part of loading to final warehouse/destination.

Some of the perils covered by the policy are fire, explosion, sinking and general average contribution of cargo.

  1. Goods in Transit

Inland transit insurance covers the insured interest against theft, fire, damage directly caused by overturning or collision or derailment of the carrying conveyance or collapse of bridge and embankments.

  1. “All Risk” Insurance

It covers the insured against loss or damage by fire, theft, or any accident or misfortune not excluded by the policy. Properties to be covered by this policy are personal effects, house hold goods and the like.


  1. Engineering Insurance


  1. Contactor’s “All Risk” (CAR) Insurance

It is all risk policy. It offers comprehensive and adequate protection against loss or damage in respect to the contract works, construction plant and equipment as well as third party claims in respect of property damage or bodily injury arising in connection with the execution of a building/civil project.

Main causes of losses identifiable under CAR are

  • Fire, lightning and explosion
  • Natural perils
  • Theft
  • Lack of skill
  1. Erection All risk (EAR) insurance

This engineering insurance offers comprehensive and adequate protection against all risks involved in the erection of machinery, plant and steel structures of any kind, as well as third party claims in respect of property damage or bodily injury arising in connection with execution of an erection project.

EAR insurance provides a very wide cover. Almost any sudden and unforeseen loss or damage occurring to property insure on the erection site during the period of insurance will be indemnified.

  1. Contractor’s Plant and Machinery (CPM) Insurance

This is an insurance of contractor’s plant and machinery on annual bases. It covers any loss or damage from any cause whatsoever occurring at work, at rest during maintenance operations and is not limited to specific construction site.

Main causes of losses identification under CPM policy are:

  • Fire, lightning and explosion
  • Natural perils
  • Theft
  • Lack of skill

The cover doesn’t include third party legal liability unless it is incorporated in the contractors all risk insurance.


  1. Machinery Breakdown Insurance

It was developed grant industry effective insurance cover for plant, Machinery and mechanical equipment at work, at rest or during maintenance operations.

By its nature, Machinery Insurance is “All Risks” insurance for machinery supplementing the coverage afforded by Fire Insurance. Thus it covers unforeseen and sudden physical loss of or damage to the insured items necessitating their repair or replacement.

All type of machinery, plant, mechanical equipment and apparatus may be covered under machinery insurance.

If possible, all the machinery of plant or workshop or of a separate plant section should be included in the insurance in order to insure that the risk is adequately balanced.

Only those items having a short service life compared to the entire plant are normally excluded from machinery insurance i.e. mainly:

  • All type of interchangeable tolls
  • Sieves, engraved cylinders, stamps, dies, ropes, chains, belts
  • Parts made of glass ceramic or wood, rubber tires
  • Operating media of any kind such as fuel, gas, refrigerants, catalysts, liquid, lubricants (oil in transformers and circuit breaks, however, included since breaks, however included since it is not only a coolant but also serves as an insulation agent).
  • Machinery insurance cover is limited to the insured’s premises and does not include Third Party Liability and perils that could be catered in other policies unless specifically included by endorsement.

Loss or damage covered under Machinery insurance is mainly due to

  • Faulty design
  • Faults at work or in erection
  • Defects in costing and material
  • Faulty operation , lack of skill, negligence, malicious acts
  • Tearing apart an account of centrifugal force
  • Physical explosion, flue gas explosion in boilers
  • Electric causes like short circuit
  • Shortage of water in boilers
  • Act of God
  1. Electronic Equipment Insurance (EEI)

It comprises in the context of this insurance all electrical and electronic systems such as:

  • Electronic data processing (EDP) equipment
  • Electrical equipment for medical use
  • Communication facilities
  • Equipment for research and material testing

Electronic Equipment Insurance is “Accident” insurance on an all-risk basis covering sudden and unforeseen losses which physically affect the subject matter insured.



  1. Boiler and Pressure Vessel Insurance Policy

It provides cover against losses or damage (other than by fire) to any boiler or pressure vessel and to other property of the insured. Liability of the insured at law for damage to property not belonging to the insured, liability of the insured at law on account of fatal or non-fatal insures to any person other than the insured’s family, caused by and solely due to explosion or collapse of any boiler or pressure vessel whilst in the course of ordinary working.


  1.  Liability Insurance


  1. Public Liability Insurance

Provides cover in respect of legal liability to third parties for bodily injury and loss of or damage to property. The policy gives cover for legal liability for damages for accidents causing bodily injury to or death, disease or illness sustained by any person not under a contact of employment to the insured, or accidents causing loss of or damage material property belonging to another and caused during the period of insurance, arising out of and in connection with the business.

  1. Professional indemnity Insurance

Insurance professional persons or firms for their legal liabilities to third parties arising from their professional error and omission negligence of that of their employees

Not only can they cause bodily injury or damage to property through their cause bodily injury or damage to property through their negligence, they can fail to exercise and care that is expected of them.

  1. Product Liability Insurance

Provides cover in respect of legal liability to third parties for bodily injury to a person or loss of or damage to property caused by products or goods supplied by the insured.

Note that it is not just the manufacturer who can have a product liability, retailers and any firm involved in the chain of distribution can also find themselves bearing responsibility for the good supplied to customers.

  1. Carrier Legal Liability Policy

The cover indemnifies the insured against:-

Loss of or damage to the insured property while being loaded, transported and unloaded by them within the territorial limit stated in the schedule during the period of insurance as a result of an accident.

  1. All cost and expenses of litigation:
  1. Recovered by any claimant against the insured:
  2. Incurred with the written consent of the company in respect of a claim against the insured for compensation to which the indemnity expressed in the policy applies.
  1. Workmen Compensation Policy Covers:-

If any employee in the insured’s immediate service shall sustain death or bodily injury by accident or occupational disease occurring at the place assigned to him for work and if the insured shall be liable to pay compensation for such death, bodily injury or occupational disease under the Ethiopian law.

  1. Business Interruption Insurance  

Business interruption insurance is sometimes known as consequential loss or loss of profit. Policies like fire, engineering, “All Risks” deal with the value of the property damaged or destroyed, but not with the losses caused by reduced sales and continued expenditure during the repair period and thereafter.

Therefore, business Interruption Insurance exists to meet demand for protection in the event of some incident happening which disrupts the operation of the business causing a loss of income and continued expenditure of some unavoidable costs while the business was not operational. 

When a property is destroyed or damaged the owner of the property insured will be indemnified by the payment of a sum of money which would enable them to repair or replace what is lost, damaged or destroyed. It is not, however, the full extent of their loss.



  1. Pecuniary Insurance
  1. Bonds

In addition to the above GIC Insurance Company provides various types of bonds.

  • Bid Bond
  • Performance Bond
  • Advance Payment Bond
  • Supply Bond
  • Retention Bond
  • Maintenance Bond
  1. Fidelity Guarantee Insurance Policy

It covers loss of property or money as a direct result of fraudulent act by the employee(s) insured.

In other words, Fidelity Insurance provides compensation to an insured for loss suffered due to fraud or dishonesty of the employees whose honesty is guaranteed by the term of the policy. Thus, the employer can protect himself from the risk of infidelity of the staffs especially those whose main duty involves the holding of money or securities.

  1. Money Insurance

Money insurance is one form of pecuniary insurance which compensates the insured of loss of money, as defined here under, sustained as a result of fortuitous circumstance through the acts of burglary’s and/or thieves while in transit or in a locked safe.

For the purpose of money insurance the term “MONEY” is defined as cash, bank notes. Currency notes. Cheques (except crossed cheques). Postal order, money order, current postage, revenue stamp and credit cards.

  • The amount of any loss of money belonging to the insured or for which the insured is responsible, occurring during the period of insurance and not exceeding the limit of liability stated in the policy.
  • Loss of or damage to safe and or strong room resulting from theft or any attempted threat.


  1. Travel Health Insurance
  • GIC Insurance is pioneer to deliver this service at reasonable price.
  • The company provides the cover in collaboration with Insurance Company in Germany.
  • Travel Health Insurance is provided to customers who travel to Europe and Schengen States. The Insurance covers the customer’s medical expenses of emergencies only.
  • It covers medical expenses of the customer in case of accident or sudden acute illness.

Expenses and circumstance covered by the insurance

  • If travelers during their stay in the Schengen states or anywhere in Europe face accident or acute illness their medical expenses, up to 30,000 euro will be covered.

Some of the costs to be covered are:

  • Surgery as a result of accident or acute illness.
  • Admission to a hospital as a result of accident or acute illness.
  • Expenses for services like ambulance, wheelchair…
  • Transportation expenses in case the customer passes away.
  • Covers minor dental sickness up to an amount of 300 Euro.
  • Medical expenses up to 50 Euro would be covered by the insured
  • Customers aged 75 and above are entitled to receive insurance coverage only for accidents.

Some of Medical expenses not Covered by the insurance

  • Medical treatment which was a reason to make the journey.
  • Injury resulting from a criminal or illegal activity.
  • Dental medication excluding minor treatment
  • Accidents caused by alcoholic drinks and drugs.
  • Maternity and related expenses.

Requirements and Modalities of delegation

  • The traveler should personally be present to arrange the cover.
  • In case he/she fails to do the above, the process can be carried out by legal representatives or acknowledged family members. (Father, Mother, Spouse and child.)

The traveler shall present:

  • A copy of renewed passport
  • Date of his/her flight and duration of his/her stay.

Note that the insurance period should not be lesser to that of the VISA duration.

Duration of Cover and payment

  • The duration ranges from a minimum of 7 days to three years. The payment varies according to the duration and the minimum starts from amount birr 200.00.
  • 50% discount id offered for ages below 16 years old.

Change of duration and cancellation of Travel Coupon

  • A Traveler is allowed to adjust or change period for reason of change in flight schedule.
  • If the traveler wants to cancel the insurance agreement he/she is required to inform the insurance company within 30 days. From a date of issue of the travel coupon by providing valid justification.
  • As a result, the paid amount would be refunded by deducting a service charge of 15 Euro.

Measures to be taken in case of accidents and acute illness.

  • The customer id required communicating with the insurance company in Germany telephone & E-Mail addresses (I.E available on the back of the coupon).

The customer should present a

  • Copy of his/her passport
  • Copy of entry visa
  • Insurance coupon for accidents
  • Accidents notification form.



      Reinsurance Arrangements:-

  • The Company's general risk acceptances are well protected by reputable and renowned international reinsurers listed belo.
  • . African Reinsurance Corporation (Leader) [(A-) Strong by AM Best & S&P]
  •  PTA/ZEP-RE Reinsurance Company [(B+) Good by AM Best].
  •  Kenya Re Reinsurance Company [(B+) Good by AM Best]. and
  • reinsurance broker like J.B. Boda Reinsurance Broker Pvt Ltd of India with other reinsurance companies worldwide